Question: ABC, Inc. is issuing bonds at $ 8 4 0 . The bonds have 2 0 years to maturity with a coupon rate of 6

ABC, Inc. is issuing bonds at $840. The bonds have 20 years to maturity with a coupon rate of 6.5% compounded semiannually. ABCs marginal tax rate is 30%. What is the after-tax cost of debt?

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